Abbott Hit With $70 Million Verdict Over Similac Necrotizing Enterocolitis Cases
Abbott Laboratories faces a $70 million verdict after a Cook County jury awarded $53 million compensatory and $17 million punitive damages in four necrotizing enterocolitis cases tied to its Similac Special Care infant formula. Abbott now confronts over 1,700 similar lawsuits nationwide.
1. Jury Awards $70M in Four NEC Cases
A Cook County jury awarded a total of $70 million in four cases alleging Abbott's Similac Special Care formula caused necrotizing enterocolitis in premature infants. The jury granted $53 million in compensatory damages—$15 million each to two children, $16 million to a third and $7 million to a fourth—and $17 million in punitive damages.
2. Liability Findings
Jurors found Abbott liable on counts of product defect, failure to warn and negligence after hearing evidence that all four infants developed NEC following consumption of the formula. Three children required surgery as infants and continue to experience serious gastrointestinal issues.
3. Litigation Landscape
Abbott now faces more than 1,700 similar lawsuits nationwide claiming its premature-infant formulas cause NEC. These cases span events from 2012 through 2019 and involve allegations of inadequate warnings and product defects.
4. Potential Financial Impact
The verdict may prompt Abbott to increase litigation reserves and could pressure profit margins if settlement agreements follow. Market reaction could hinge on the company's ability to manage cumulative legal exposure and secure favorable resolutions.